topic Social security tax in Get your taxes done using TurboTax

Social security tax

Dwlab1 — Thu, 06 Mar 2025 10:51:57 GMT

I’ve been trying to get an answer to this question. I’m turning 62 years old and have decided to retire early. My income limit is 22,320. My wife still works and earns a little over 100k (she’s younger than me). When we go to file our tax returns, married filing jointly, will my wife’s income push me over my limit making my social security benefits taxable, or can I still work and earn less than my 22,320 and have my social security benefits remain non-taxed? Will my Social Security benefits be reduced by 1 dollar for every 2 dollars I earn given that I’m 62?

We live in Massachusetts. Thanks so much.

Re: Social security tax

Vanessa A — Thu, 06 Mar 2025 12:07:55 GMT

Yes, your wife's income of over $100k will make your social security 85% taxable, so it does not matter what you make, your social security will be 85% taxable.

Also, if you file married filing separately, your social security automatically becomes 85% taxable, so this would not be a "loophole" to avoiding the taxability of your social security.

Yes, according to Social Security, "If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2025, that limit is $23,400."

Re: Social security tax

dmertz — Thu, 06 Mar 2025 13:21:05 GMT

"Will my Social Security benefits be reduced by 1 dollar for every 2 dollars I earn given that I’m 62?"

This reduction is based only on your compensation, so as long as your compensation is $23,400 or less in 2025, there will be no reduction. Your wife's compensation is not involved in this calculation. ($22,320 was the limit for 2024.)